Whitehaven Coal's sales are on the rise but it expects prices to continue to fall.
The miner achieved a 46 per cent improvement in coal sales in the three months to June, due mainly to increased production at its Narrabri mine and the commissioning of its controversial Maules Creek project.
More than 1.4 million tonnes of coal was produced at Maules Creek in the June quarter, and production will soon be ramped up to an annual rate of 8.5 million tonnes.
But coal prices have continued to fall due to an oversupply in the market and lower Chinese demand, though Whitehaven said it had been shielded somewhat by the high quality of its thermal coal, which is used to generate electricity.
The average thermal coal price realised by the company was $US60.72 per tonne in the June quarter, down from $US65.37 in the three months to March.
The average June quarter price for its metallurgical coal, which is used by the steel industry, was $US75.90 per tonne, down from $US87.15 in the preceding quarter.
Managing director Paul Flynn tipped prices for metallurgical coal to fall further in the three months to September, in the range of $US70 and $US75 per tonne.
"Certainly our forecast for the September quarter is a further reduction," Mr Flynn said.
"We've all seen what the settlements have been for metallurgical coal ... and that will have its related impact."
But prices for thermal coal are expected to be more resilient at around $US60 per tonne, due to Whitehaven's participation in the higher quality segment of the market, he said.
"While the market has tested at times prices below $US60 it pretty quickly recovers," Mr Flynn said.
Whitehaven shares dropped eight cents, or 6.4 per cent, to $1.165.
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